HomeMy WebLinkAbout5.A.(1) Certificate of Completion~- ~ ~ i>
• • ~,~~'~` ~~'~~' /~~d,
J \ / `z
Community & Economic Development `~~~ ~~~''~a~~
1200 County-City Building, 227 West Jefferson, South Bend, Indiana 46601-1830 Phone 574/235-9371 Fax 574/235-9021
To: South Bend Redevelopment Commission
From: Bob Mathia ~ ~yjj
Subject: Madison Center, Inc. -Return of Performance Guarantee
Date: October 21, 2009
On November 7, 2003, the Redevelopment Commission signed a Contract for Sale of Land with the
Madison Center. The Contract was for three parcels of land commonly known as the Crescent Street
Properties which are located between Niles and Hill Streets (See attached map.). The Contract
required Madison Center to provide a performance guarantee to the Commission to assure that the
redevelopment promised by the buyer would actually occur. The guarantee was a payment of 10%
of the purchase price of $480,000.
Acquisition of the property was intended to facilitate implementation of a construction and expansion
plan for Madison Center"s campus in order to increase the scope and quality of the services it
provides. Madison Center states that work is now complete and the organization is requesting the
return of its guarantee payment. However, before the guarantee can be returned the Commission
must issue a Certificate of Completion which certifies that the project has been completed in
substantial accordance with the plans approved by the Commission. The plans for the Crescent
Sheet Properties called for construction of: (a) a multi purpose building containing 60,000 to 80,000
square feet of space and costing $10,500,000 to $14,000,000 to house employee training facilities,
outpatient service facilities, other clinical facilities and possibly retail space on the first floor; and (b)
a group home containing 3,000 to 5,000 square feet at a cost of $375,000 to $625,000 to house eight
to sixteen patients.
On September 30, 2009, Madison Center's attorneys, on behalf of the organization, submitted a letter
describing the improvements made on the Madison campus, including the Crescent Street Properties,
and requested the issuance of a Certificate of Completion and return of the perfornlance guarantee.
In sum, the letter states that Madison Center constructed a children's facility containing just 30,000
square feet at a cost of approximately $4,500,000 on the Crescent Properties. The letter notes that
the building plans for another building, the Geropsychology Institute, located along Niles Avenue
and north of the Crescent Properties, were enlarged from 76,000 to 90,000 square feet to house retail
space, training areas and patient areas ori~~inally planned for the children's facility. The cost of this
building is over $20,000,000. The attorney's letter further explains that the group home was moved
from the Crescent Properties to the corner of Turnock Street and South Bend Avenue with the
collaboration of officials from the Northeast Neighborhood Revitalization Organization (NNRO) and
Madison Memo.10.21.09.doc
What We Do Today Makes A Difference
the City. In addition, the letter states that the group home cost in excess of $500,000 and
accommodates eight patients.
The letter noted that additional facilities were also completed as part of Madison's expansion plan.
They included construction of a 10,000 square foot facility at a cost of $2.8 million known as the
Sunshine Clubhouse and a 5,000 square foot ADHD clinic as well as rehabilitation of the Providence
House. The letter stated that over the last six years Madison Center cai7-ied out a major construction
program amounting to $43,000,000 which resulted in the addition of five new facilities and the
launch of new and expanded programs to service clients. These totals include the facilities mentioned
previously.
Staff recommends that the Redevelopment Commission sign and issue the Certificate of Completion
and authorize repayment of the Performance Guarantee in the amount of $48,000. The price of
$480,000 Madison Center paid for the Crescent Street Properties exceeded the lower of the two
appraisals completed by MAI appraisers for the Commission at the time of sale ($473,000 and
$570,000). That price also exceeded the investment the Commission had made in the properties. At
the time of the sale Staff estimated that the Commission had invested a total of approximately
$450,000 in the properties for acquisition, demolition and pollution abatement. While not all of the
facilities that were originally planned for the Crescent Properties were built there, they were
constructed elsewhere by Madison Center; therefore, the organization has met the spirit and intent of
the plans in the Conhact for Sale.
Madison Memo.10.21.09.doc What We Do Today Makes A Difference!
GRESGENT AVENUE PR^PERTIES
PARCELS 7 ~ ~j AND 3
~____
N
m
z
I
Ii
~~
r ~
~ ~
-~ !---
~~
m
m~
~~
J~
i
,---
~--
N
Return to: Key Nos. 18-5038-1350
Department of Redevelopment 18-5038-1351
1400 County-City Building 18-5038-1372
227 W. Jefferson Blvd.
South Bend, Indiana 46601
CERTIFICATE OF COMPLETION
The City of South Bend, Indiana, Redevelopment Commission (the
"Commission") certifies that oil December 5, 2003, by Quit Claim Deed (the `'Deed'')
recorded on December 23, 2003, as Document Number 0379969 in the Office of the
Recorder of St. Joseph County, Indiana, the Commission conveyed to Madison Center,
Inc., an Indiana not-for-profit corporation, (the `'Developer') the following described
real estate (the ``Property') in the City of South Bend, Indiana:
SEE EXHIBIT 'A' ATTACHED
Pursuant to the covenants, conditions, restrictions and provisions of a Contract for
Sale of Land for Private Development entered into by and between the Commission and
the Developer (the "Contracf~) dated November 7, 2003, and recorded on December 23,
2003, as Document Number 0379968 in the Office of the Recorder of St. Joseph County,
Indiana, the Developer undertook to complete certain improvements on the Property
conveyed by the Deed. The Developer has fully completed the improvements on the
Property in accordance with the provisions of the Contract.
The Commission has caused this Certificate of Completion to be issued
November 6, 2009, and is evidence of the satisfaction and termination of the restrictions
and covenants in the Contract and in the Deed, and specifically:
neither the Commission nor any successor in interest or assign shall
hereafter have or be entitled to exercise any rights, remedies, or controls
otherwise available with respect to the Property as a result of a default in
or breach of any provision of the Contract or the Deed by the Developer or
any successor in interest or assign, unless:
a. the Developer, any lessee, or any other successor in interest or
assign defaults in or breaches the covenants of Section VII (A)(2)
of the Contract; and
b. the right, remedy or control relates to such default or breach.
Dated this 6`I' day of November, 2009.
CITY OF SOUTH BEND, INDIANA
REDEVLOPMENT COMMISSION
By:
Marcia Jones, President
STATE OF INDIANA )
SS:
COUNTY OF ST. JOSEPH )
Before me, a Notary Public in and said County and State, personally appeared
Marcia Jones, to me known to be the President of the City of South Bend Redevelopment
Commission, and acknowledged the execution of the foregoing Certificate of
Completion.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my
official seal this day of November, 2009.
Notary Public
Residing in St. Joseph County, Indiana
My Commission Expires:
This instrument was prepared bq Lawrence J. Meteiver, Attorney No. 10452-98. Assistant City Attorney for the Giry of South Bend,
1400 County-City Building. South Be~id- Indiana 46601.
I affinn_ under penalties o1'perjuiy- that I have taken reasonable care to redact each Social Security number in this document- unless
rcyuind by law. L.J. Meteiver.
LEGAL DESCRIPTIONS
PARCEL I.
THAT PART OF THE SOUTH HALF OF SECTION 1, TOWNSHIP 37 NORTH,-RANGE 2
EAST, PORTAGE TOWNSHIP, CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA
WHICH IS DESCRIBED AS: BEGINNING AT A POINT OF INTERSECTION OF THE NORTH
LINE OF CRESCENT AVENUE WITH THE WEST LINE OF A VACATED 14 FT. WIDE
NORTH-SOL^TH ALLEY SHOWN ON THE PLAT OF "CEDAR HEIGHTS ADDITION` AS
RECORDED IN PLAT BOOK # 2 ON PAGE # 59 IN THE RECORDS OF THE ST. JOSEPH
COUNTY, INDIANA RECORDER'S OFFICE; THENCE ALONG THE ISORTH LINE OF
CRESCENT AVENUE, S. 63° -13'-46" W., 36.21 FT. (REC. S. 62° -30'-QO" W,,
36.OU FT.); THENCE N. 00° -00'-00" W „ 125.91 FT. (REC. NORTHERLY 120
FT.); THENCE N. 73° -14'-30" E., (REC. PERPENDICULAR TO THE EAST LINE OF
NILES AVENUE), 36.00 FT. TO THE WEST LINE OF SAID VACATED 14 FT. WIDE
NORTH-SOUTH ALLEY AS SHOWN ON THE PLAT OF SAID "CEDAR HEIGHTS ADDITION";
THENCE ALONG THE WEST' LINE OF SAID ALLEY, S. O1° -O1'-28" W., 120.00 FT.
(REC. SOUTH) TO THE POINT OF BEGINNING.
CONTAINING 0.094 ACRES MORE OR LESS.
SUBJECT TO ALL LEGAL HIGHWAYS, EASEMENTS AND RESTRICTIONS OF RECORD.
PARCEL II.
THAT PART OF THE SOUTH HALF OF SECTION 1, TOWNSHIP 37 NORTH, RANGE 2
EAST, PORTAGE TOWNSHIP, CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA
WHICH IS DESCRIBED AS: BEGIbTNZNG AT A POINT OF INTERSECTION OF THE NORTH
LINE OF CRESCENT AVENUE WITH THE WEST LINE OF HILL STREET; THENCE ALONG
THE NORTH LINE OF CRESCENT AVENUE, S. 63° -i3'-46" LV., 202.03 FT. (REC.
S. 62° -30'-00" W.) TO THE WEST LINE OF A VACATED 14 FT. WIDE NORTH-
SOUTH ALLEY SHOWN ON THE PLAT OF "CEDAR HEIGHTS ADDITION" AS RECORDED ZN
PLAT BOOK # 2 ON PAGE # 59 IN THE RECORDS OF THE ST. JOSEPH COUNTY,
INDIANA RECORDER'S OFFICE; THENCE ALONG THE WEST LINE OF SAID ALLEY AND
SAID PLAT N. O1° -O1'-28" E., 133.17 FT. TO THE SOUTH LINE OF A PARCEL OF
GROUND OWNED BY DOROTHY AND FOSTER THOMAS AND IDENTIFIED AS TAX KEY
NUMBER 18-5038-1371 IN THE RECORDS OF THE ST. JOSEPH COUNTY, INDIANA
AUDITOR'S OFFICE; THENCE ALONG THE SOUTH LINE OF SAID PARCEL, S. BB° -21'-
14" E., 178.74 FT, (REC. 179 FT.) TO TH2 WEST LINE OF SAID HILL STREET;
THENCE ALONG SAID WEST LINE, S. O1° -30'-07" W., 37.02 FT. TO THE POINT
OF BEGINNING.
CONTAINING 0.35 ACRES MORE OR LESS,
SUBJECT TO ALL LEGAL HIGHWAYS, EASEMENTS AND RESTRICTIONS OF RECORD.
exHra~r
~~~
PARCEL III.
THAT PART OF THE SOUTH HALF OF SECTION 1, TOWNSHIP 37 NORTH, RANGE 2
EAST, PORTAGE TbWNSHIP, CITY OF SOUTH BEND, ST. JOSEPH COUNTY, INDIANA
WHICH TS DESCRIBED AS: BEGINNING AT A POINT OF INTERSECTION OF THE NORTH
LINE OF CRESCENT AVENUE WITH THE EAST LINE OF NILES AVENUE; THENCE ALONG
SAID EAST LINE, N. 16° -45'-30" W „ 356.97 FT. (REC. N, 18° -00'-00" W.,
357.00 FT.) TO THE SOUTH LINE OF A PARCEL OWNED BY MADISON CENTER AND
IDENTIFIED AS TAX KEY NUMBER 18-5038-1349 IN THE RECORDS OF THE ST.
JOSEPH COUNTY, INDIANA AUDITOR'S OFFICE; T'dENCE N. 73° -29'-57" E „
316.98 FT. ALONG SAID SOUTH LINE (REC. N. 72° -00'-00" E., 319.00 FT.) TO
THE WEST LINE OF A VACATED 14 FT'. WIDE NORTH-SOUTH ALLEY SHOWN ON THE
FLAT OF "CEDAR HEIGHTS ADDITION" AS RECORDED ZN PLAT BOOK # 2 ON PAGE #
59 IN THE RECORDS OF THE ST. JOSEPH COUNTY, INDIANA RECORDER'S OFFICE;
THENCE ALONG THE WEST LINE OF SAID ALLEY AND SAID PLAT, S. O1° -O1'-28"
W., 0'5.15 FT. {REC. SOUTH 66 FT.); THENCE S. 73° -14'-30" W., 36.00 FT.
(REC. PERPENDICULAR TO THE EAST LINE OF NILE$ AVENUE); THENCE S. 00° -00'-
00" E., 125.91 FT. {REC. SOUTHERLY 120 FT.) TO THE NORTH LZNE OF
CRESCENT AVENUE; THENCE ALONG SAID NORTH LINE FOR THE NEXT TWO COURSES,
S. 63° -13'-46" W., 100.35 FT. (REC. S. 62° -30'-00" W., 100.50 FT.) AND
S. 22° -41'-29" W „ 201.37 FT. {REC. S. 21° -15'-00" W., 202.00 FT.) TO
THE POINT OF BEGINNING.
CONTAINING 1.42 ACRES MORE OR LESS.
SUBJECT TO ALL LEGAL HIGHWAYS, EASEMENTS AND RESTRICTIONS OF RECORD.
SURVEYOR'S CERTIFICATION
TO: COMMUNITY & ECONOMIC DEPARTMENTi' DEPARTMENT
OF THE CITY OF SOUTH BEND, AKA CITY OF SOUTH BEiv'D, INDIANA, FOR THE
USE AbTD BENEFIT OP ZTS REDEVELOPMENT COMMISSION:
1, RONALD L. HARNER, A.'K A REGISTERED LAND SURVEYOR IN THE STATE OF
INDIANA AND HEREBY CERTIFY: THAT I HAVE SURVEYED THE LAA'DS HEREON
DESCRIBED AND DELINEATED, AIv-D THAT THIS SURVEY WAS PERFORl+~D UNDER MY
DIRECT SUPERVISION AND TO THE BEST CF MY KNOWLEDGE AND BELIEF THIS
SURVEY HAS BEEN PERFORMED IN ACCORDANCE WITH THE REQUIREMENTS OF RULE 12
OF "MINIMUM STANDARDS FOR COMPETENT PRACTICES CF LAND SURVEYZN^v" AND AS
PRESCRIBED BY INDIANA ADMINISTRATIVE CODE 865, 1.1-I2.
RONALD L. HARNER L.S.
INDIANA REG. ~# 910032
DATED: SEPTEI~ER 17, 2001